Overview
- S&P Dow Jones Indices said Carvana will enter the S&P 500 before the open on Dec. 22 alongside CRH and Comfort Systems USA, replacing LKQ, Solstice Advanced Materials and Mohawk Industries.
- Shares jumped as much as about 10% to fresh records near $429–$438 on Monday, extending a rally that has lifted Carvana’s market value above Ford and General Motors.
- Strategists expect significant index-tracking purchases, with one estimate pegging roughly 16 million shares to be bought before the rebalance, a setup that could heighten near-term volatility.
- The gains follow strong Q3 results showing 155,941 retail units, $5.65 billion in revenue, $263 million in net income and $637 million in adjusted EBITDA, though several analysts flag limited near-term upside.
- Valuation screens show the stock as expensive relative to fundamentals as social sentiment skews bearish, and recent insider sales totaling more than $30 million have drawn scrutiny from retail traders.